• The Financial District


President Andrés Manuel López Obrador of Mexico has reaped the whirlwind and searing heat from proponents of renewable energy after he cut back on the supply of renewable energy in the county, citing the COVID-19 pandemic as the justification.

In a story written by Mark Stevenson for the Associated Press (AP), he said the order issued by the Mexican president over the weekend was music to the ears of aging fossil fuel power plants but consumers argued it would also raise power rates for electricity produced by inefficient power plants.

It sparked outrage among Mexican and foreign investors who had been allowed to sell their power into the government-operated grid, with industry associations saying it would affect 28 solar and wind projects that were ready to go online, and 16 more under construction, with a total of $6.4 billion in investments, much of it from foreign firms.

“This represents a frontal attack on legal security for investments in Mexico, and causes serious consequences for the country, including the loss of jobs and investor confidence,” Mexico’s Business Coordinating Council wrote Sunday. The council cited $30 billion in affected investments, noting that “this does not just discriminate against renewable energy; it also allows authorities to artificially inflate the price of electricity in the country and arbitrarily displace any private sector power generation project.”

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